Government pushes for State-owned enterprise equitisation, budget repatriation

Government pushes for State-owned enterprise equitisation, budget repatriation

In recent years, significant progress has been made in restructuring, reorganising and privatising SOEs.

The Prime Minister has called on ministries, Government agencies and provincial authorities to expedite the finalisation of SOE equitisations. — Photo tapchicongthuong.vn

Deputy Prime Minister Hồ Đức Phớc has signed a directive aimed at accelerating the finalisation of equitisation from State-owned enterprises (SOEs) and ensuring that revenues from these processes are paid into the State budget.

The initiative is part of a broader effort to enhance transparency and efficiency in the management of State assets.

In recent years, significant progress has been made in restructuring, reorganising and privatising SOEs.

The Government has established comprehensive mechanisms and policies to facilitate these transformations, ensuring they are carried out transparently and in a manner that maximises State benefits.

However, despite these achievements, challenges remain.

Some ministries and local authorities have yet to approve restructuring plans for various SOEs, and many enterprises have not completed their privatisation processes as scheduled.

As of December 31, 2024, a total of 118 enterprises had been approved for restructuring under a Government decision in March 2022. From 2021 to 2024, the State divested from 15 enterprises, generating a total revenue of VNĐ656.9 billion (US$25.2 million).

Meanwhile, the expected revenues from 2024 to 2025 are projected at nearly VNĐ48 trillion.

To address these issues, the Prime Minister has called on ministries, Government agencies and provincial authorities to expedite the finalisation of SOE equitisations.

This includes clarifying the status of State capital at the point of conversion to joint stock companies and ensuring timely payments of revenues generated from these transactions.

The directive emphasises the need for SOEs to resolve outstanding issues and comply with legal requirements during the equitisation process.

Any challenges that exceed the authority of local officials must be reported to higher authorities to facilitate quick resolution.

Furthermore, the State Capital Investment Corporation (SCIC) is tasked with collaborating with relevant agencies to ensure a thorough review of enterprises that have transferred State ownership rights to the SCIC.

They must also address any lingering issues related to the privatisation process.

Local governments are urged to prioritise their input on land use plans for privatised enterprises, ensuring compliance with regulations to support timely completions of the equitisation processes.

This collaborative approach aims to enhance the efficiency of public asset management and streamline the revenue collection process for the State budget.

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